League City's council voted unanimously to propose a no-new-revenue property tax rate for fiscal year 2026-27, continuing a 12-year run of falling municipal tax rates even as the city considers borrowing nearly $166 million for infrastructure and park projects. The proposed rate of $0.356505 per $100 valuation would mark the 12th consecutive year the city's property tax rate has decreased.
The council's Aug. 11 vote sets the maximum tax rate for the coming fiscal year, according to Community Impact. Mayor Nick Long thanked city staff for their work in producing the no-new-revenue budget proposal, the outlet reported. A no-new-revenue rate is designed to raise the same amount of property tax revenue from existing properties year over year, even as League City's total taxable value has increased.
That increase follows a two-year dip in the city's total taxable value, per the same account. City officials say the rate keeps pace with a state law meant to rein in unchecked property tax growth: under Texas Senate Bill 2, municipalities face a 3.5% cap on maintenance and operations revenue increases without triggering a mandatory voter election, according to background cited by Hoodline.
How Close League City Came to an Election Trigger
The city's official tax notice, published Aug. 7, set League City's voter-approval tax rate at $0.465935 per $100 valuation, according to the City of League City. That leaves roughly $0.10943 of cushion between the proposed rate and the threshold that would force a mandatory election under state law. Assistant City Manager and Chief Financial Officer Angie Steelman submitted certified appraisal roll calculations to council on Aug. 11, with formal publication of the tax rate metrics scheduled for Sept. 1 in the Galveston County Daily News, according to municipal filings.
The council is set to hear and adopt the first reading of the budget at its Aug. 25 meeting, per Community Impact, with a second and final reading on the budget and tax rate scheduled for Sept. 8, according to city documents. Municipal budget guidelines require the full council to adopt the fiscal year 2026-27 budget by Sept. 20 and formally enact the property tax rate by Sept. 25, per the City of League City. The city's new fiscal year begins Oct. 1.
A Flat Rate, But Not a Debt-Free Year
Even as the operating tax rate holds flat, League City is weighing a much larger financial commitment. The city issued a public notice on July 6 scheduling an Aug. 25 council vote to authorize up to $165.9 million in Combination Tax and Revenue Certificates of Obligation for citywide infrastructure, water treatment, and park projects, according to the City of League City. Those certificates are secured by property taxes and limited utility revenues, separate from the day-to-day operating budget covered by the proposed tax rate.
The city's finances got an outside vote of confidence this month. S&P Global Ratings affirmed League City's AA+ long-term credit rating on Aug. 11, also assigning an AA+ rating to $159 million in proposed 2026 certificates of obligation and $7.8 million in general obligation bonds, according to S&P Global Ratings. The agency cited the city's growing tax base and strong reserves in its assessment.
What the Rate Cut Means for Homeowners
For the current 2025-26 fiscal year, council had adopted a no-new-revenue rate of $0.363550 per $100 valuation to support a $525.70 million overall budget that included $194.51 million in operating spending, according to the City of League City. That budget also expanded emergency services, adding 5.5 public safety positions and purchasing an ambulance. Alongside that rate last September, council doubled the city's property tax exemption for senior citizens and disabled residents from $100,000 to $200,000, reducing the taxable value of eligible homes before local rates apply.
Even with a flat municipal rate, city property taxes make up only about 22% of a typical League City homeowner's total property tax bill. Clear Creek ISD takes the largest share at 58%, while Galveston County accounts for another 20%, according to city figures. That means shifts in school district or county rates, along with changes in individual home appraisals, can still move a homeowner's total bill even when the city's own rate falls.
League City's tax base has been buoyed by a wave of high-income newcomers. A national demographic report released in January ranked the city 77th in the country for high-income household growth, recording 11,404 households earning $200,000 or more in 2024. That growth follows League City's 10th straight tax rate cut two years ago, and comes as the city pushes ahead on other capital projects, including planned expansions at Pat Hallisey Park.
